1. It is for sure that Indian share market is tracking the global markets more than the activities at the home front and that is the reason probably Rakesh Jhunjhunwala has commented that elections are important but may not be able to cast much effect on the Indian stock market.
2. The main reasons which has led to the surge in Indian stock market are as appended below:
(a) US has a reason to cheer as factory and home sales data is better than expected and thus people are hopeful that downtrend in economy may be limited. On the negative side ADP Employment Report has shown more job losses; however same has been over ridden by positive prevalent news of higher manufacturing data and auto-sales reports.
(b) Reserve Bank of India may further ease monetary policies.
(c) National Advisory committee of Accounting Standards has deferred implementation of Accounting Standard 11 (AS-11) and the same deals with accounting treatment of foreign currency transactions. As per the new standard companies need to report gain/loss every quarter after taking into account the value of their Forex dent at the quarter end curry rates.
2. As a strategy for F&O trading in share market of India one can go long as and when Nifty starts trading above the level of 3250 with stop loss as 2999 because this rally if it has strength can take the Nifty to the levels of 3800.
Indian Share Market future direction in days to come
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